4 ms·
So to play devil's advocate here, one good thing that does come out of bailing out depositors is that the employees that work for these companies can get paid.
by polishdude20 4y ago
So to play devil's advocate here, one good thing that does come out of bailing out depositors is that the employees that work for these companies can get paid. Therefore, they can use that money to spend on the economy. They can prevent stress from losing a paycheck. That has to count for something doesn't it?
- salawat 4y agoAt what cost? What happens if the next bank run happens before the FDIC fund can be retopped off enough to cover depositor losses, even at the old 250k limit? How are they getting backstopped? If they aren't, why did SVB's depositors get the special treatment? For that matter, who gets to explain to previous losers of money to the FDIC limit why they apparently weren't cool enough to warrant a full backstopping like these people? No credit for half-answers.